Chapter 5:  Separate Accounts and Accounting

5.2.		Trust or Escrow Accounts
		All Money Belonging to Others accepted by a Broker or Brokerage Firm for deposit into the Broker’s or Brokerage Firm’s Trust or Escrow Account must be deposited in one or more accounts separate from other money belonging to the Broker or Brokerage Firm. The Broker or Brokerage Firm must identify the fiduciary nature of each separate Trust or Escrow Account in deposit agreements with a Recognized Depository by the use of the word “trust” or “escrow” and a label identifying the purpose of such account, such as “sales escrow”, “rental escrow”, “security deposit escrow”, or other abbreviated form defined in the deposit agreement. The Broker or Brokerage Firm must retain a copy of each executed Trust or Escrow Account deposit agreement for inspection by the Commission.

5.10.	Commingling Prohibited
		A Broker’s or Brokerage Firm’s personal or business operating funds must not be commingled with Money Belonging to Others. One or more separate Trust or Escrow Accounts may be maintained by a Brokerage Firm pursuant to the following duties and limitations:
	A.	Money held in a Trust or Escrow Account which becomes due and payable to the Brokerage Firm must be withdrawn monthly.
	B.	Money advanced by a Brokerage Firm for the benefit of another may be placed in the Trust or Escrow Account and identified as an advance but may be withdrawn by the Brokerage Firm only on behalf of such person. Any amount advanced to a Trust or Escrow Account must be identified and recorded in the journal and the ledger and disclosed in accounting to the beneficiary as set forth in Rule 5.15.
	C.	In the absence of a specific written agreement to the contrary, commissions, fees, and other charges collected by a Brokerage Firm for performing any service on behalf of another are considered “earned” and available for use by the Brokerage Firm only after all contracted services have been performed and there is no remaining right of recall by others for such money. The Brokerage Firm must identify and record all commissions, fees, or other charges withdrawn from a Trust or Escrow Account on the account journal and individual ledgers of those against whom the fees or commissions are charged. If a single disbursement of fees or commissions includes more than one (1) transaction, rental period or occupancy or includes withdrawals from the account of more than one (1) Trust or Escrow Account beneficiary, the Brokerage Firm, upon request, must produce for inspection by the Commission a schedule which details:
1.	The individual components of all amounts included in the sum of such disbursement; and
2.	Specifically identifies the affected beneficiary or property ledgers as set forth in Rule 5.14.B.
	D.   Rental proceeds received by a Broker for managing Broker’s own properties through the Broker’s Brokerage Firm, including any Broker’s properties held in partnership with others, joint ventures, or syndications provided the Broker’s ownership in the entity or property is more than the 20% threshold pursuant to section 12-10-201(6)(b)(VII), C.R.S. must be deposited in an account separate from any other Trust or Escrow Accounts maintained for Money Belonging to Others. Such funds are not subject to Trust or Escrow Accounts and record keeping requirements as set forth in Rules 5.2. and 5.14.

5.11.	Money Belonging to Others for deposit by a Broker for Non-Real Estate Brokerage Services
		
A.	Money Belonging to Others which is accepted for deposit in connection with activities not involving Real Estate Brokerage Services must be deposited into Broker’s or Brokerage Firm’s Trust or Escrow Account(s). Such activities not involving Real Estate Brokerage Services include:
1.	Guest deposits for short term rentals;
2.	Security deposits for Broker’s own rental properties including any Broker owned properties held in a partnership, or other entity with others, any join ventures, or syndications provided the Broker’s ownership in the entity or property is more than the 20% threshold pursuant to section 12-10-201(6)(b)(VII), C.R.S.;
3.	Deposits from a buyer when the Broker is acting as a builder; or
4.	Any other non-Real Estate Brokerage Service purposes.
B.	If a Broker accepts Money Belonging to Others for deposit into Broker’s or Brokerage Firm’s Trust or Escrow Account as set forth in subsection A. of this Rule for activities not involving Real Estate Brokerage Services, the Broker must:
1.	If required by the Broker’s Brokerage Firm’s Office Policy Manual, deposit the funds in the Broker’s Brokerage Firm’s Trust or Escrow Accounts as set forth in Chapter 5 of these Rules; or
2.	Deposit the funds into Broker’s own Trust or Escrow Accounts as set forth in Rule 5.2.  and must also comply with the following Chapter 5 Rules:
i.	Rule 5.6. Trust or Escrow Funds must be Available Immediately without Penalty;
ii.	Rule 5.9. Diversion and Conversion Prohibited;
iii.	Rule 5.10. Commingling Prohibited;
iv.	Maintain a “journal” as set forth in Rule 5.14.A. and perform a two-way reconciliation monthly to show that on the date of reconciliation the cash balance shown in the journal and the reconciled bank balance are the same; and
v.	Rule 5.21. Production of Documents and Records